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High Dividend stocks

Discussion in 'Technical Analysis' started by nagarjunadevasani, Oct 10, 2020.

  1. nagarjunadevasani

    nagarjunadevasani Member

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    Dear Shabbir sir , when i go through some oil & gas and power sector companies (most of the PSU) , all companies are giving very high dividend .. and day by day price is going down .. why it is like that .. is it sustainable in longer run ? .. if we take ONGC , GAIL , Power grid its giving 7% of dividend yield..what is the logic behind this high dividend on these stocks particularly ..
     
    nagarjunadevasani, Oct 10, 2020
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  2. shabbir

    shabbir Administrator Staff Member

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    They don't have growth and there is no way they can use the cash to grow the business. So they give out dividend. Because government wants to spend more on infra dev and wants money, the dividend helps them as well.

    Market is looking for growth. 7% Dividend yield does means there may be very little downside but investors are looking for upside.
     
    shabbir, Oct 12, 2020
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